(Yicai) Dec. 17 -- Yichun, known as the “Lithium Capital of Asia,” is planning to cancel 27 mining licenses, including those held by lithium giants such as Jiangxi Special Electric Motor, according to a recent notice by the city’s Natural Resources Bureau.

Special Electric Motor confirmed today that its lithium-bearing porcelain stone mine in Shiziling Mining Area, Yifeng county in eastern Jiangxi province is on the cancellation list. The mining license was valid from May 2019 to September 2024. The mine contains about 11.2 million tons of ore, including 57,323 tons of lithium oxide.

Special Electric Motor said it has filed an objection with the Natural Resources Bureau and submitted a plan with proposed solutions. The firm will also step up efforts to start production at its Xikeng Lithium Mine, which is also in Yichun.

Gao’an Mining Development holds four of the mining licenses to be deregistered and is the company most affected, according to the notice made by the Natural Resources Bureau on Dec. 12. The firm is a wholly-owned subsidiary of Yichun Mining, which was set up by the Yichun Municipal Government in 2013 to consolidate the city’s lithium resources under a single state-owned company.

Even though Yichun has the largest reserves of lepidolite in Asia, most of its mining licenses are registered as “ceramic clay” or “kaolin,” industry insiders said. This is a legacy issue that has lasted for many years. Since the new Mineral Resources Law came into effect on July 1, lithium is now classified as an independent mineral.

The move is mainly about clarifying long-standing boundary issues between ceramic clay and lithium mining rights, Futures Daily reported, citing Wang Meidan, an analyst from CITIC Futures. It is unlikely to have a major impact on lithium carbonate supply.

Seventeen of the 27 licenses to be revoked were registered as ceramic clay, seven as limestone, and the rest include kaolin, quartzite and other types of minerals.

All the licenses up for cancellation expired between 2010 and 2024. After a public notice period of 30 working days ends, they will be officially deregistered.

The most actively traded contract of lithium carbonate futures exceeded CNY100,000 (USD14,184) per ton again on Dec. 15, closing at its highest level since June 2024.

Editor: Kim Taylor